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Internet Marketing vs Traditional Marketing: A Comparative Analysis

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 Research

Internet Marketing vs
Traditional Marketing:
A Comparative Analysis
Abstract by Sanjay Bhayani & Nishant V. Vachhani
Marketing goods is a basic phenomenon of every society. The objective of marketing is to make products available to
consumers as per the current demand. Marketing is no more a simple exercise. It has undergone changes to reach
consumers. Marketing has been done physically since long. Consumers are becoming smarter in terms of purchasing.
This requires innovation in marketing. This paper helps us to identify preferences of the people. Prime focus is to
understand the difference between conventional way of marketing products and technological way of marketing
products in India.
The current paper recognizes the differences in consumer opinions by availing distinguished services of
traditional as well as internet marketing strategies. Internet is changing ways to reach consumer fast and is a more
convenient way than customary means of marketing. Internet offers 24x7, 365 days a year web facilities which is more
convenient for consumers these days. Consumers are becoming more Information Technology (IT) savvy in their
searching as well as purchasing preferences. No doubt, ecommerce is not yet considered safe in India, but cyber has a
highly vibrant and potential market in coming days to win eyeballs of Indians.

Keywords
Ecommerce, Information Technology, Cyber, Web
Introduction
In traditional marketing we attempt to make the public aware that we have a product or service for sale. As per online
review article by McCauley, D. (2013), in traditional marketing, using traditional marketing tools such as television, radio or direct
mail, we can expect a response rate of somewhere between 0.5% and 2% on outbound messages. In other words, if we get that
message out to 1000 people, we can expect between 5 and 20 people to respond.
Viewed in another way, if we hope to get 100 responses, we must contact somewhere between 5,000 and 20,000 people. (Of
course these are broad averages and may be slightly different depending on product, target market and other variables). In
traditional marketing, we use specific tools which hit very large audiences. These include:
Television
Radio
Newspapers
Magazines
Direct Mail
Trade Shows
Today we know that a huge percentage of buyers use the Internet when making purchasing decisions. Even those who
still buy in the 'real world' locally often use the Internet to make decisions prior to buying. They will use computers, tablets, readers
and cell phones to search, do some related research perhaps and then buy.
While Internet marketing presents a much larger opportunity, Internet marketing is in many ways a mirror, or reverse
image of traditional marketing.
The nature of the web, with its two-way communication features and traceable connection technology, allows firms to

FIIB Business Review. Volume 3, Issue 3, July - September 2014 53


gather much more information about customer behavior
and references than they can gather using micromarketing
approaches. Now, companies can measure large number of
things that are happening, as customer and potential
customers gather information and make purchasing
decisions. The information that a web site can gather about
its visitors is called a click stream.
The idea of technology-enabled relationship
management has become possible when promoting and
selling on the web. Technology-enabled relationship
management occurs when a firm obtains detailed
information about a customer's behavior, preferences,
needs, and buying patterns , and uses that information to
set prices, negotiate terms, tailor promotions, add product
features, and otherwise customize its entire relationship
with that customer.
Dimensions
Advertising
Targeting
Promotions and discounts offered
Distribution channels
Pricing of products or services
New product features
Measurement used to manage the
customer relationship
Table 1 : Technology-Enabled Relationship Management and Traditional CRM
Although companies can use technology-enabled
relationship management concepts to help manage
relationships with vendors, employees, and other
stakeholders, most companies currently use these concepts
to manage customer relationships. Thus, technology-
enabled relationship management is often called customer
relationship management (CRM), technology-enabled
relationship management or electronic customer
relationship management (eCRM). Table 1 lists seven
dimensions of the customer interaction experience and
shows how technology-enabled relationship management
differs from traditional seller-customer interactions in each
of those dimensions.
FIIB Business Review. Volume 3, Issue 3, July - September 2014
Research
The 4 Ps concepts provide clear idea about the
contrast between traditional marketing and eMarketing
concepts. It considers several vital facets of the contrast
between these two diversifications of the marketing.
Product
Product is the most significant component of
marketing. Whenever consumer purchases a product,
he/she likes to see the product physically. This is feasible in
the case of conventional, customary & traditional
marketing. However in eMarketing it is not feasible to get
the actual touch of the product. Instead they can only see an
implicit image of the product. Not being able to reach and
feel the product physically, can be worrisome for the
consumer and have an effect on his/her purchasing
decision. However, eMarketing websites offers a wider
Technology-enabled relationship Traditional relationships
management with customers
Provide information in response to Push and sell a uniform
specific customer inquiries message to all customers
Identify and respond to specific Market segmentations
customer behaviors and preferences
Individually tailored to customer Same for all customers
Direct or through intermediaries; Through intermediaries
customers' choice chosen by the seller
Negotiated with each customer Set by the seller for all customers
Created in response to customer demands Determined by the seller based
on research and development
Customer retention; total value of the Market share; profit
individual customer relationship
range of goods & services which are easily available, as
compared to physical stores. Stores have to deal with issues
of cost and space unlike eMarketing websites.
One of the main aspects is how online services
delivered to customers. In online, the more difficult to
provide face-to-face contact facility to consumers whereas
in the case of physical store it is consumer is face to face
with the seller. The consumer can get a quicker response in
physical store than the online store. Online business can
provide facilities like email, chat option, FAQ etc to remain
responsive to their consumers.
One issue that can affect the consumers' choice of
purchase is the warranty of the good. This provides comfort
to consumers, both in customary & traditional marketing
and eMarketing but most importantly it provides the safe
and sound feeling to those purchasing online. The

consumer who cannot see and touch the product while
purchasing it would feel more safe and sound knowing
that there is a warranty on the product and this would
make the choice of purchase easier and less risky.
Price
The pricing of a product can be based on the cost
of the process of getting the product to the market. While
a business does eMarketing it has a better prospect of
saving costs and therefore feasibility to have lower
prices. Internet based marketing sites not only save on
cost spent on storing the product, but also uses cheap
mode of communication like email. Competition is very
tough as the competitors are a click away while a
potential consumer is searching for information on the
Internet.
Since payments for purchase are done by credit
card mostly, there can be some security issues that cause
problems for internet buyers. For instance a consumer
would feel safer in the physical store where they can have
more control over the payment process; whereas
purchasing online they would be taking a risk while
giving the credit card details.
Place
In conventional, customary & traditional
marketing, companies have the opportunities to
decorate the stores in order to create a specific
atmosphere that can attract consumers. Some attractive
tools to create that atmosphere can be music, colors, etc,
but through eMarketing it is almost not possible to create
a real sensation since a website is just a virtual image
The atmosphere of the store mentioned above is
very important for sales of the goods & services. For
instance if you see an unorganized store just filled up
with some clothes you hardly feel tempted to go in and
look for anything. The way the store is decorated
provides a message about the business and its style.
While one thinks about this, one can realize the
importance of the physical existence of the store. Think
for instance how the business could offer the same
atmosphere through their website. For instance we can
consider H&M. They try to create the same atmosphere
on their website as they have in their real stores. Despite
this, the experience of stepping into the store is differs
from clicking on computer while shopping.
Internet helps companies to be reachable at any
time, regardless of openings hours that physical stores
require. Also a website has a wider reach as compared to
a locality based store with a physical address.
FIIB Business Review. Volume 3, Issue 3, July - September 2014
Research
Promotion
When it comes to endorsement and promotion,
speed in getting the message across varies in traditional
and internet marketing. Speed of getting the message of
advertisement, news or any type of information to
consumers is very quick through Internet. This is a very
important in the competitive world of business.
Additionally, difference between endorsement
and promotion by Internet is the durability of the
marketing message the marketer wants to communicate
with the consumers. In conventional, customary &
traditional manner, the message would receive attention
during a limited amount of time like in case of
advertisements aired on TV or sent out in newspapers
and pamphlets. On the other hand, the marketer's
message to the consumers can exist for longer duration
on the business's website and it is easily reached and
handy to the consumers 24/7.
Through a website, a business can present itself
in several ways where the consumer can study different
facets of the business and get to know it well. This is not
feasible in conventional, customary & marketing. For
instance the complexity of wide range of information
cannot be easily fitted into a magazine or TV commercial
etc. The tools for customary & traditional endorsement
and promotion can be used essentially in communicating
the message shortly and consistently.
There is of course the burden of maintaining a
website or online commercials that consumes time,
resources and capital. But this should be weighted out by
their easy accessibility and better prospect. Additional
issue is the damage that a failed or crashed website or
other Internet service can have on a business's image.
A good website is very important for succeeding
in online marketing. According to Times of India, some
important course of action for a good website for a
business is:
“Provide clear information on contacts, delivery and
refund policies.”
“Think “user journey” rather than individual pages.”
“Let shoppers browse without having to register.”
“Keep websites simple and easy to use.”
“Offer an efficient and effective search engine.”
“Market the website online and link it to search
engines.”
“Make obtainable and provide steadiness of know-
how.”
“If the Internet does not offer the full bricks-and-
mortar range, say so.”
“Give complaints ID numbers.”
”Build trust.”
55

Nowadays a large group of consumers have the
problem of time but have the money to spend. It is easier
for them to shop online, as it saves time. Good website
design, accessing speed, brand value is important factors
in online business otherwise failure in this can damage
the profit of online business. Internet provides the
marketer to reach the targeted group easily and have
continues relationship with them.
Literature Review
There are many researches and studies about
the comparison between traditional marketing and
modern marketing and also advantages and
disadvantages of internet marketing, which shows the
performances and its efficiency.
Chaston and Mangles (2003), examined the
influence of marketing style on the utilization of the
Internet among small UK manufacturing firms. They
employed a quantitative methodology to determine
whether, in business-to-business markets, the Internet is
a technology that will be managed differently by firms
that have adopted a relationship versus a transactional
marketing orientation. The research was conducted
through mailed questionnaires on a sample of 298 UK
small firms (manufacturers of mechanical or electronic
components / their primary area of activity is business
to-business marketing / have between 10-50 employees
/ not branch plants of British or multinational
organizations). Insufficient evidence was found to
support the view that relationship-orientated firms,
when compared with transaction ally-orientated
competitors, exhibit differing perceptions about the
nature of online markets.
In this modern age of internet almost every
progressive business has web presence, some people
think that website is just a commercial requirement but
others think that it is mandatory to run their company
activities. These different theories about internet have
been discussed a lot in recent marketing literature. In the
past decade marketers has been arguing about the role of
internet in marketing. Initially marketers used internet
as communication tool but as time passed they realized
the true potential of internet and the idea of internet
marketing evolved. According to Hoge (1993), Internet
marketing (IM) is the transfer of goods or services from
seller to buyer that involves one or more electronic
methods or media. It has begun with the use of
telegraphs in the nineteenth century. With the advent
and mass acceptance of the telephone, radio, television,
and then cable, electronic media have become the
dominant marketing force.
FIIB Business Review. Volume 3, Issue 3, July - September 2014
Research
According to Yazdanifard, R., Venpin, M., Wan
Yusoff, Wan F. & Rabiul Islam, M. (2013) Internet
marketing is an interesting topic especially for
researchers in the marketing field. It is a new way of
marketing a product/service globally to the targeted
market around the world. This paper introduces a new
approach concerning Internet marketing in electronic
commerce; showing how advertisers need this
innovation to be successful. This also relieves marketing
managers for more value added tasks such as marketing
plans for better development of the company.
According to Stuart E. J. (2014) day by day there
is upward growth of online services in regular usages by
consumers. However, traditional marketers somehow
do not want to admit that the world changed. They are
slow in taking advantages of new opportunities
presented to them. B2B-enhances supply chain process
need to pay much attention to real-world business
process, adapt automated systems to business behavior
and mingle content and technologies with crucial
information systems.
Hoge's (1993) idea of internet marketing is
simple although it does not touch the important aspect of
customer relationship. Strauss and Ansary (2006)
defined internet marketing in their latest book as the use
of information technology in the process of creating,
communicating, and delivering value to customers, and
for managing customer relationships in ways that benefit
the organization and its stake holders. This explanation
tells that internet marketing is not only about selling
products or providing services through IT but it is lot
more than that. It is not just traditional marketing using
the information technology tools but it's a strategic
model to achieve brand value and provide customer
satisfaction. Idea of internet marketing can be derived as
type of marketing in which objectives are achieved
through use of electronic communication tools like
internet, interactive TV and mobile phones.
Dave Chaffey (2002) defines internet marketing
as “Applying Digital technologies which form online
channels (Web, e-mail, databases, plus mobile/wireless
& digital TV) to contribute to marketing activities aimed
at achieving profitable acquisition and retention of
customers (within a multi-channel buying process and
customer lifecycle) through improving our customer
knowledge (of their profiles, behaviour, value and loyalty
drivers), then delivering integrated targeted
communications and online services that match their
individual needs.” Chaffey's definition reflects the
relationship marketing concept, it emphasis that it
should not be technology that drives Electronic
marketing, but the business model.
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Salehi, M., Mirzaei, H., & Aghaei, M. (2012) Traditional Marketing Internet Marketing
compares both internet based as well as traditional
marketing, Internet Marketing is more economical and Physical access to product Wide range of product
faster way to reach out to buyer directly, and is the ideal Personal service More feasibility to cut cost
way for business to advertise locally or internationally. As Quick feedback Easier to reach more consumers
the result in case of comparison; both types of marketing
Less tough competition Faster speed of communication
can help traders and marketers to do business. Each has
& shopping
advantages and disadvantages. In traditional marketing
consumers can see and touch the real goods or service More safe and sound payment Feasibility to present business
but the domain of effect is low, on the other hand using of (its image, offers, history etc.)
internet marketing will exceed the boundaries and Atmosphere of physical store 24 x 7 access
introduce goods and services to the demographic of (more real)
internet users. Also using the internet would be more
Face to face communication Communication directly with
chipper, faster and convenient for marketing.
target group
Approximately the advantages of internet marketing are
much more than advantages of traditional marketing. Quicker & easier measurement Feasibility for continuous
Table 2 identifies the core differences between of results/responds relationship
traditional marketing and internet marketing.
Table 2 : The Contrast Model
Making the marketing objectives successful is
the common goal that each and every company aims at. marketing and traditional marketing can bring the very
They want to enhance the old relationship with best result to a business. Nevertheless, eMarketing solely
consumers, create new ones, amplify and raise the sales is also powerful and it can maximize effectiveness in the
and become famous in the market. (Salehi, M., Mirzaei, H., Internet environment.
& Aghaei, M.,2012) Integration between Internet

Online PR Online Partnership

Search Engine Marketing Portal presentation Affiliate marketing
Search engine optimisation (SEO) Social media blog, feeds and Sponsorship
Pay per click (PPC) communities Co-branding
Trusted feed Media alerting services Link building
Brand protection Widget marketing

Website
&
Partner Micro Websites

Interactive Ads Opt in E-mail Viral Marketing

Website specific media buys House list e-mails Pass along e-mails
Ad networks Cold (rented list) Buzz marketing
Contra-deals Co-branded Generating media mentions
Sponsorship Advertisements in third party e-
Behavioral targeting newsletters

Figure 1 : Six Categories of E-Communications Tools for Media Channels

FIIB Business Review. Volume 3, Issue 3, July - September 2014 57

 Research

Figure 1 shows the six main types of digital media As per Wixom & Todd (2005), there are some elements
communications channels, and the proper use of these that affect the organic listings such as content, keyword,
techniques together with a good website can help inbound links, tags and the page rank of a website, and so
companies to draw the traffic as well as achieving the on. The work of a business is trying to get as high ranking
eMarketing objectives they have set up. as feasible on the result page and improving those
elements concerned. Zingale & Arndt (2001) argue that
Search Engine Marketing (SEM) higher ranking make running a website more feasible
Search engine marketing (SEM) is an important (Pay-per-click vs. Organic SEO).
channel of eMarketing. It includes three main techniques
Percent
viz. Search engine optimization (SEO), Paid per Click July 2008 July 2009
Change
(PPC) and Trusted feeds which includes Paid-for-
Total Internet 80,554 1113,685 41 %
inclusion. These elements of search engine marketing
can help companies to amplify and raise their visibility Google Websites 48,666 76,684 58 %
on the search engine as well as spread their names to Yahoo! Websites 8,689 8,898 02 %
several populaces. (McKinney, V., Yoon, K., and Zahedi, F. Baidu.com Inc. 7,413 7,976 08 %
M. 2002), Moreover, they can make provide the chances Microsoft Websites 2,349 3,317 41 %
for companies to bring in and launch new goods and
eBay 1,223 1,723 41 %
services to make the sales and finally bring profits.
NHN Corporation 1,243 1,526 23 %
Search Engine Optimization (SEO) Ask Network 929 1,291 39 %
Before we define Search engine optimization, let Yandex 663 1,290 94 %
us take a look at what the search engine means. (Tubar, E., AOL LLC 1,148 1,023 -11 %
Lee, J., King, D. & Chung, H. M., 2000) “Search engine is a Facebook.com 743 879 18 %
website or a statistics and database, along with the tools
to generate that statistics and database and search it Table 3 : World Wide Search Market Overview
contents for “keywords” that describe what you're
looking for” (Arora, N., 2004). Search engine In July 2009, approximately 113 billion searches
optimization (SEO) is a popular and familiar term on the were made all over the world. (Table 3) We can see that
Internet. It is also considered to be “the practice of despite the differences between the number in July over
making a website attractive to a search engine by two years i.e. 2008 and 2009, Google search engine is the
presenting its code and content in such a way that the top ranked search engine, which takes about 67.5 %
search engine will assume it will address a specific market share (counted 76.7 billion searches). Yahoo with
inquiry from a (human) searcher” (Charlesworth, 2009). 7.8% (8.9 billion searches) comes second, and the third
SEO is the key activity of search engine one is Baidu which is from China with 7.0% (8 billion
marketing. This technique is preferable to use even they searches). (Google Commands 67% of Glob-al Search
are the big companies or the small and every one Share.
businesses. Search engine optimization optimizes
business web pages in the search engines to give good Paid Per Click (PPC) or Paid Search Marketing
results. The idea of Paid per Click (PPC) was created by
As per Davis (1989), Indeed, SEO is the process Overture in 1998, a business which works in the Internet
of choosing the most relevant websites and adjusting industry that was acquired later by Yahoo in 2003. (Liu, C.
websites in result pages while the searchers type a and Arnett, K. P., 2000) PPC is based on the concept of
keyword related to it. SEO can enhance the number of paying nominal amount per click with respect to search
traffic as well as its quality to a website. The results here results. The method is a good and successful in online
appear in the “organic search results” or sometimes marketing; and it has become widespread on the Internet
called “natural search results”. Nevertheless, a business market nowadays.
cannot pay for the search engine to get the high ranking in Pay per Click is defined as “the performance-
the list of results. For instance, Google cannot take money based publicity and advertising where the advertiser
from businesses to do that. It has to provide suitable pays for each click”. (Chaffey, 2002) The advertiser has to
results for the searchers to keep them use its search pay for the search engine so that his advertisement will
engine. Otherwise, they will leave it. be listed in the search engine result pages or in third

FIIB Business Review. Volume 3, Issue 3, July - September 2014


party websites. Nevertheless, the advertiser does not
need to pay while the ad is displayed; he only pays while a
user clicks on an ad and it leads to the website of the
advertiser. (Gefen, D., Karahanna, E., and Straub, D. W.,
2003) There is a sign to recognize those companies who
use the PPC method. For instance, there is a user who
searches some information about a business on the
search engine; the lists of the relevant text
advertisements with a link to companies' page will be
shown in the result pages. In the Google result pages
those advertisements are placed in the right side and in
the top of the organic results with the marks “Sponsored
Links” above it.
In Paid per Click you can bid on keyword to get
the high ranking. “The relative ranking of these paid
performance placements is typically based on the highest
bid cost-per-click value for each key phrase. The business
which is prepared to pay the most per click gets top spot”
(Chaffey 2002). Indeed, it is competitive for the
companies to join this program. The result appears in the
part of Paid per Click advertisements. The more capital a
business pays for each click, the higher position of
advertisements will be displayed in the result pages.
Those companies which have big budgets and bid with
higher prices have more advantages than the smaller
ones.
Trusted Feed Including Paid for Inclusion
Trusted feed, which it is also called as XML feed,
is a type of search marketing. It is “an automated method
of putting content into a paid search engine or shopping
contrast engine index, and typically using XML
(Extensible Markup Language) to define statistics and
facts exchange” (Chaffey, 2002). Nevertheless, it is rarely
used than the two techniques mentioned above.
The program improves the indexing of a website
which has a large content by using the spider built search
engine. (Jarvenpaa & Todd, 1997). As a result, the search
engine will index the content of a website deeply, and
makes a better target traffic. Business pays for the service
only if there is traffic coming to its website. Normally, it
does not pay for each page like in Paid Inclusion whether
there is traffic to a website or not. Nevertheless, the
program does not guarantee for the web pages to get high
ranking in the result page.
There are some companies which provide the
Paid Inclusion program such as Inktomi, Fast, Teoma and
Ask Jeeves, AltaVista and Over tune of Yahoo. Yet, Google
does not offer the program. A business usually pays for
the Paid Inclusion program annually. It is cheaper than
use paid placement program such as PPC. Nevertheless,
FIIB Business Review. Volume 3, Issue 3, July - September 2014
Research
price to use Paid Inclusion is still one of its disadvantages
as it is quite high. For instance, Inktomi charges $89 as a
total fee for three pages to apply the Paid Inclusion
technique.
Online Public Relations (Online PR)
Public relation is one marketing communication
channel with the purpose to create promote, maintain
the goodwill, favorable image, and reputation for
organization, brand, etc. toward different stake-holders.
(Kalakota, Dr. R., and Robinson M., 2009) The stakeholder
is sometimes called public or target addressees. They are
investors, suppliers, consumers, employees, and so on.
The goal of public relations is usually gained by the
influence of the different media.
Online public relations mean establishing web
hyperlinks to provide detailed information about goods
and services to their potential consumers. (Chaffey,
2002) The purpose of online PR in general is similar to
conventional, customary & traditional public relations.
Its main objectives are to enhance the awareness as well
as “maximizing favorable mentions of your business,
brands, goods & services or websites on third party
websites which are probably to be visited by your target
buyers. A secondary goal is achieving links to a
destination website” (Chaffey, 2002). Those objectives
can be obtained by several tools and techniques that
Internet offers.
Research Methodology
Main objective of doing this research is to
measure the differences between internet marketing and
traditional marketing in Gujarat, India.
Research Objectives
Specifically, research objectives are as below:
To measure the market penetration of internet
marketing with compare to traditional marketing.
To know an awareness of internet marketing to
purchase online with compare to traditional
marketing.
To understand the consumer buying patterns
through internet marketing options with compare to
traditional marketing.
To explore the various utilities of internet marketing
with compare to traditional marketing.
To decide the online catalog preferences of
consumers.
Research Design
Research design constitutes the blueprint for the
data collection, measurement and analysis of data. In this
59

study the researcher analyzed internet marketing
preferences with compared to traditional marketing
preferences among the consumers of Gujarat state. This
is a descriptive research study.
Research study describes the buying patterns of
consumers. Descriptive research includes surveys & fact-
finding enquiries of sampled respondents. The main
characteristic of this method is that the researcher has no
control over the variables; he can only report what has
happened or what is happening.
Sampling Method
The sample was selected randomly from the sub-
geographical urban areas of Ahmedabad, Baroda, Surat,
and Rajkot in Gujarat State.
Sample Size
In this study, 500 respondents were considered
to measure an impact of internet marketing among them.
Since the focus of this study is on different attitudes and
perceptions about online purchasing, only Internet savvy
respondents were considered.
Sources of Data
To accomplish the objectives of the study, the
researcher had to depend on both the primary and
secondary data. Primary data are those which are
collected afresh and for the first time and thus happen to
be original in character. Secondary, data are those which
have already been collected by someone else and which
have already been passes on through the statistical
process. The secondary data needed for the study was
collected from the relevant online research thesis, online
research articles, journals, books, magazines & websites.
Researcher has approached 500 respondents to get data
as per questionnaire.
N Mean
INTERNET BUYING_PREF 500 1.35
PERSONAL_BUYING_PREF 500 1.36
Table 4 : Descriptive Statistics
Research Hypothesis
Research hypothesis provides the base to derive the
research conclusions. It was preferred to test hypothesis
at significance level (α) of 5% and at confidence level (1-
α) of 95%. This allowed to fix the acceptance region is
equal to 95% & the rejection region is equal to 5% to
FIIB Business Review. Volume 3, Issue 3, July - September 2014
Research
accept or reject the null hypothesis H0 or alternative
hypothesis Ha. Following is the list of hypothesis used to
verify in this research study.
H01: There is no significant difference between
internet buying preferences & personal buying
preferences.
H02: There is no significant difference between
eCatalog preferences & Catalog preferences.
H03: E-purchasing is independent of traditional
purchasing
Hypothesis Testing: Internet buying Prefe-
rence Vs. Personal Purchasing Preference
In this hypothesis, researcher used one of the
non-parametric test (distribution free) test which
McNemer Test. This test is useful with before-after
measurement of the same number of respondents.
Initially, respondents are divided into equal groups as to
their preferable and non-preferable views. After some
treatment, the same number of respondents are asked to
express their views whether they prefer or don't prefer.
In this test researcher used Internet buying preference
and personal buying preference criteria to know any
difference between the traditional style of purchasing
and modern style of purchasing among the 500 number
of respondents. Table 4 provides the descriptive
statistics where sizes of sample, mean, standard
deviation as well as percentiles are calculated.
Table 5 provides the McNemer data table for
internet buying and personal buying preference values of
500 respondents. In this Table, 211 respondents says
that they prefer internet buying option as well as
personal buying option, 116 respondents says that they
prefer internet buying option but not personal buying
option, 111 respondents says that they prefer personal
Percentile
50th
SD Min Max 25th 75th
(Median)
.476 1 2 1.00 1.00 2.00
.479 1 2 1.00 1.00 2.00
buying option but not internet buying option, and 62
respondents says that they do not like internet buying
option as well as personal buying option.
 Research

PERSONAL_BUYING_PREF ECATALOG_PREF
INTERNET BUYING_PREF CATALOG_PREF
1 2 1 2

1 211 116 1 244 117

2 111 62 2 124 15

Table 5 : Internet buying and Personal Buying Table 8 : Catalog Preference and E-Catalog
Preference Preference
Table 6 represents McNemer Test statistics
which point probability 0.05 and its less than 0.5 mean Table 8 provides the McNemer data table for e-
null hypothesis is accepted and alternate hypothesis is catalog and catalog preference values of 500
rejected. It means there is no difference in internet respondents. In this Table 244 respondents says that
buying preference and personal buying preference; more they prefer catalog option as well as e-catalog option, 117
or less both are same. respondents says that they prefer catalog option but not
e-catalog option, 124 respondents says that they prefer
N 500 e-catalog option but not catalog option, and 15
Chi-Square .070 respondents says that they do not like e-catalog option as
Asymp. Sig. .791 well as catalog option.
Exact Sig. (2-tailed) .791
N 500
Exact Sig. (1-tailed) .395
Chi-Square .149
Point Probability .050
Exact Sig. (2-tailed) .699
Table 6 : McNemer Test Statistics
Exact Sig. (1-tailed) .350

Hypothesis Testing: Catalog Preference Point Probability .046

Vs. E-Catalog Preference Table 9 : McNemer Test Statistics

In this hypothesis, researcher used McNemer
Test, a non-parametric test (distribution free). This test is Table 9 represents McNemer Test statistics
useful with before-after measurement of the same which point probability 0.046 and its less than 0.5 mean
number of respondents. In this test researcher used E- null hypothesis is accepted and alternate hypothesis is
catalog preference and catalog preference criteria to rejected. It means there is no difference in e-catalog and
know any difference between the traditional style of catalog preference; more or less both are same.
purchasing and modern style of purchasing among the
500 number of respondents. Initially, respondents were Hypothesis Testing: Traditional Purchasing
divided into equal groups with respect to their preferable Weightage Vs. E-Purchasing Weightage
and non-preferable views. After some treatment, the
same numbers of respondents were asked to express In this hypothesis, researcher used two tests
their preferences. where first is Wilcoxon Signed Ranks test and second is
the two sample sign test. Here both the test is non-
parametric test. Researcher used weightage (score) of
Percentile
traditional purchasing option and e-purchasing option to
50th
N Mean SD Min Max 25th 75th verify hypothesis. With the size of 500 sampling
(Median)
respondents mean score of traditional purchasing is
CATALOG_PREFE 500 1.28 .448 1 2 1.00 1.00 2.00
54.25 which is less compare to the mean score 57.04 of E-
CATALOG_PREF 500 1.26 .441 1 2 1.00 1.00 2.00 purchasing. This indicates consumers are inclined more
Table 7 : Descriptive Statistics towards the E-purchasing than the traditional
purchasing. Moreover, standard deviation is also high in
Table 7 provides the descriptive statistics where case of traditional purchasing than the E-purchasing.
sizes of sample, mean, standard deviation as well as This S.D. also indicates the consumers are changing their
percentiles are calculated. buying preferences more frequently in traditional
purchasing with compare to E-purchasing.

FIIB Business Review. Volume 3, Issue 3, July - September 2014 61

 Research

Percentile
50th
N Mean SD Min Max 25th 75th
(Median)
TRADITIONAL_PUR_SCORE 500 54.25 21.699 10 90 40.00 55.00 75.00
E_PUR_SCORE 500 57.04 20.874 10 90 40.00 60.00 75.00

Table 10 : Descriptive Statistics

Descriptive statistics are provided in the Table Table 13 provides two sample sign test
10 which provides information of several important frequency data. In this test total size of sample (N) is 500
statistics like Size of Universe (N), Mean of the data, where 187 are the negative differences of two samples
Standard Deviation (S.D.) of the data & Percentiles values. and 261 are positive differences of two samples. The
sample number one provides the score of e-purchasing
Mean Sum of
N Rank Rank
option and sample number two provides the score of the
traditional purchasing option.
E_PUR_SCORE - Negative Ranks 187 237.20 44357.00
TRADITIONAL_PUR_SCORE Positive Ranks 261 215.40 56219.00 E_PUR_SCORE -
TRADITIONAL_PUR_SCORE
Ties 52
Z -3.449
Total 500
Exact Sig. (2-tailed) .001
Table 11 : Wilcoxon Signed Ranks
Exact Sig. (1-tailed) .000
Table 11 provides details of Wilcoxon signed Point Probability .000
ranks where total size of population is 500 but negative
ranks are 187 in number as well as positive ranks are 261 Table 14 : Two Sample Sign Test Statistics
in number. In this count, 52 are the total number of ties in In Table 14, p-value is 0 mean null hypothesis is
population. Mean rank for the negative rank value is accepted means internet marketing is independent than
237.20 and for positive rank value is 215.40. Total sum of traditional marketing and it has more preferred value
ranks for negative rank value is 44357.00 and for positive with compare to traditional marketing.
rank value are 56219.00.
Conclusion
E_PUR_SCORE - Internet is considered as change agent for Indian
TRADITIONAL_PUR_SCORE
consumer market. But if we see the results with empirical
Z -2.166 evidences, it is bit controversial as far as general
p- value .030 tendency is concerned about purchasing through the
Table 12 : Wilcoxon Signed Rank Test Statistics medium of an internet. Internet buying preferences
doesn't change mentality of consumer as people prefer
In the Table 12, value of Z is -2.166 and p-value is traditional ways more and safe to their purchasing
.030 which is less than .05 mean null hypothesis is transactions. If we look at the preferences towards a
accepted but alternate hypothesis is rejected. It means E- utilization of catalogue source of information, it is
purchasing option and traditional purchasing option are preferred to have internet based purchasing details for
not same in preference and independent of each other. consumers to choose products to be purchased. As far as
the comparison of internet preferences are concerned, it
is not associated in any way with conventional way of
N marketing goods. Internet marketing stands alone in its
E_PUR_SCORE - Negative Differences 187 way. After studying about statistical results, it is clearly
TRADITIONAL_ Positive Differences 261 understandable that more number of consumers of
PUR_SCORE Ties 52
selected cities of Gujarat like to connect themselves with
online purchasing options. It suggests that online
Total 500
marking is more prolific as compared to physical
Table 13 : Two Sample Sign Test Frequencies purchasing. It is observed that electronic catalog facilities
are more preferred by consumers to obtain adequate
details about buyable goods as well as services with

FIIB Business Review. Volume 3, Issue 3, July - September 2014

 Research

compare to physical catalogs. Lastly, highest score goes to Authors’ Profile

internet as the most preferred way of purchasing than the Dr. Sanjay Bhayani, M.Com, M.Phil., Ph.D., Professor
(Management) Department of Business Management, (MBA
physical stores. So, online businesses will be having the Programme) Saurashtra University, Rajkot is a Gold Medalist in
golden future in coming days specifically in Gujarat. B.Com. and M.Com. Exams. He has been in academics for more
than thirteen years. He has a number of independent empirical
research publication in reputed journals and presented papers
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FIIB Business Review. Volume 3, Issue 3, July - September 2014 63

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